AstraZeneca, Nokia, Shell Profit Surge; Reckitt Offers $17 B to Mead Johnson

Sarla Buch
02 Feb, 2017
New York City

AstraZeneca profit more than doubled but revenues decline 13%. Deutsche Bank net loss narrowed. Daimler net surged 19%. Nokia profit and revenues soared. Reckitt Benckiser is in talks to buy the U.S.-based baby milk producer Mead Johnson for $17 billion.

[R]4:00 PM Frankfurt – AstraZeneca profit more than doubled but revenues decline 13%. Deutsche Bank net loss narrowed. Daimler net surged 19%. Nokia profit and revenues soared. Reckitt Benckiser is in talks to buy the U.S.-based baby milk producer Mead Johnson for $17 billion.[/R]

In London trading, FTSE 100 index jumped 50.23 or 0.7% to 7,157.90 and in Frankfurt the DAX index slipped 30.20 or 0.3% to 11,629.49.

In Paris, CAC 40 index gained 9.41 or 0.2% to 4,803.87.

AstraZeneca Plc fell 1.1% to 4,201 pence after the U.K.-based biopharmaceutical group reported revenues in the fourth-quarter ending in December plunged 13% from a year ago to $5.6 billion.

Net profit in the quarter more than doubled to $1.8 billion compared to the $808 million and diluted earnings per share jumped to $1.45 from 63 cents.

The drug-maker said revenues declined mainly due to the cholesterol treatment Crestor lost patent protection in the United States and sales declined 53% to $631 million.

AstraZeneca said cancer treatments revenues jumped 30% to $930 million mainly due to the introduction of the lung cancer drug Tagrisso.

""We anticipate defining data, in particular from our outstanding pipeline of Immuno-Oncology and targeted treatments,"" chief executive officer Pascal Soriot said.

Soriot added ""the company sees low to mid single-digit"" declines in total revenues, and ""a low to mid-teens percentage decline in core EPS.""

Deutsche Bank AG declined 5.1% to €18.20 after Germany-based investment bank said revenues in the fourth-quarter ending in December jumped 6% from a year ago to €7.1 billion.

Net loss in the quarter narrowed from a year ago to €1.9 billion compared to €2.1 billion and diluted loss per share dropped to €1.36 from €1.53.

The bank said provisions for credit losses in the year jumped 45% to €1.4 billion and in the fourth-quarter booked €1.6 billion in litigation charges.

Daimler AG slumped 2.8% to €68.03 after Germany-based automobiles manufacturer reported revenues in the fourth-quarter ending in December increased 1% from a year ago to €40 billion.

Net profit in the quarter surged 19% from a year ago to €2.1 billion compared to the €1.8 billion and diluted earnings per share advanced to €2.01 from €1.69.

Daimler said that the increase in profit was mainly driven by a strong gain in sales of sport-utility vehicles that offset the earnings fall in trucks and vans segment.

The Mercedes-Benz cars divisions confirmed significant growth of 10% and set a new record of 2.2 million vehicle sales and van sales jumped 12%.

Nokia Corp soared 5.3% to €4.43 after the Finland-based mobile operator said revenues in the fourth-quarter ending in December jumped 83.9% from a year ago to €6.64 billion.

Net profit in the quarter soared 32% from a year ago to €658 million compared to the €499 million and diluted earnings per share slid to €0.11 from €0.13.

“Nokia has completed the Alcatel-Lucent integration faster than anticipated,” chief executive officer Rajeev Suri said.

Nokia estimated, after the acquisition of Alcatel-Lucent, the company will save annual cost of about €1.2 billion by 2018.

Reckitt Benckiser Group Plc jumped 4% to 7,103 pence after the U.K.-based health and home products maker said it is in preliminary talks to acquire the U.S.-based baby milk producer Mead Johnson Nutrition Co for $90 per share cash or about $16.7 billion.

Mead Johnson Nutrition Co in pre-market trading on New York Stock Exchange surged 26.4% to $87.85.

Royal Dutch Shell Plc advanced 2.6% to 2,192 pence after the Netherlands-based oil and gas producer reported revenues in the fourth-quarter ending in December soared 11.5% from a year ago to $67.1 billion.

Net profit in the quarter jumped 64% to $1.5 billion compared to the $939 million and diluted earnings per share increased to 19 cents from 15 cents.